Address by Mr Michael Ahern TD, Minister for Trade and Commerce, to the CEO Forum

23 November 2005

Good Afternoon, Ladies and Gentleman.

I am delighted to be here with you all today at the CEO Forum on what is its 16^th Anniversary. Already this morning you have heard from a number of speakers and I hope you all found what they had to say worthwhile. To capitalise on the successes enjoyed by many Irish companies in recent years, we must now set our sights even higher.

Building scale is now the key issue for many Irish firms. It means growing annual sales beyond the €20m mark and increasing export revenues through strategies for accelerated growth and through mergers and acquisitions.

Today we stand amongst the wealthiest nations, we stand amongst the fastest growing, we stand as a leader in Europe. Emerging economies, both in Europe and beyond, see Ireland as an economy to emulate. Delegations arrive weekly to study our development agencies, our programmes and our successes.

Mindful of our achievements, we must continue to seek further growth, developing and enriching both our economy and our society.

In our open economy, we are all highly aware of the factors that affect trade and our position in the markets we serve. A significant reduction in trade barriers has meant enhanced market access for Irish firms. It has also exposed them up to intense international competition. Rapid globalisation has meant that global markets are now much more integrated. Changing currency values, interest rate expectation, oil prices, the continuing threat of terrorism, and the economic effects of natural disasters all impact on global markets and individual business decisions on a daily basis.

Against this backdrop of change and uncertainty, Irish firms continue to successfully plan, grow and win sales against the best international companies.

Today’s theme, “Building scale: the global challenge” is a recognition of our economic success to date and the need to set our sights even higher.

It is also recognition that for Ireland to continue to grow and compete internationally, we need to adopt a new business model.

Our vision is of a dynamic economy characterised by a range of homegrown international companies that will drive economic growth in future.

Enterprise Irelands new strategy “Transforming Irish Industry” and its new Scaling Division reflect this vision.

Enterprise Ireland is working in active partnership with Irish firms who have the capability to “go global” –to reach sales in excess of €20 million. Intensive supports are available to these firms enabling their growth and development into firms of global scale and significance.

We will of course continue to encourage and grow start-up firms. We will continue to assist and encourage firms to develop strategy, improve competitiveness, innovate, undertake R&D, collaborate with academia, access new markets, and increase skills and capabilities at both the individual firm and sector level.

The companies here today have shared their experiences and the challenges and solutions they have encountered.

They have spoken of viewing challenges as opportunities and of arriving at innovative solutions which have moved their businesses forward.

The Companies here today who have already grown to sell in excess of €20million were once start-ups. They are the business people who saw a market opportunity, they are the family members who decided to move a family business to a higher level of growth, and they are the risk takers, the true entrepreneurs.

As I said at the outset, this year marks the 16th anniversary of the CEO Forum co-hosted by Enterprise Ireland and Deloitte.

Over the years, many thousands of CEO’s have heard inspiring stories from the small to the largest success, they have experienced the difficulties of the late 80’s and early 90’s and they have witnessed the phenomenal growth of the Irish economy over the past decade.

When “The Economist” undertook a review of the Irish economy last year it listed the following as key ingredients in Irelands success to date - Fiscal and monetary stability, social partnership, the EU single market, the Foreign Direct Investment boom, the return on the investment in education, EU transfers and low personal taxes. And without doubt these factors combined to produce strong economic growth over the past 10 years.

However the article concluded that the mix of factors which brought about the Celtic Tiger were unlikely to be repeated. It is crucial that we recognise that the formula for growth in the last decade is not the same formula for success in the next. Irish enterprises need to play a significant and stronger role to secure Irelands future economic growth.

The challenges facing the SME sector have been clearly identified. The new business model for Irish firms is one built on market knowledge, innovation and internationalisation. The low cost model, providing standardised un-differentiated products or services will not serve Ireland in the future. Enterprise Irelands offers numerous practical supports to help indigenous firms adopt this new business model and to improve their competitiveness and build scale.

While the challenges are clear to see, so too are the opportunities. Ireland’s new confidence means we can face the economy’s next phase of growth with high expectations. The clarity and understanding of the issues demonstrated during today’s Forum leaves me in no doubt that the Irish economy is in very good hands.

Thank you very much.

Ends TC193